Over the last decade, Velodyne developed four generations of hybrid
solid-state LiDAR systems incorporating the company’s proprietary
software and algorithms that interpret rich data gathered from the
environment via highly accurate laser-based sensors to create high
resolution 3D digital images used for mapping, localization, object
identification and collision avoidance. Velodyne’s LIDAR solutions are
capable of producing 300K to 2.2 million data points per second with a
range up to 200 meters at centimeter-level accuracy. The Company’s high
performance LiDAR technology has been recognized by global automotive
OEMs and rideshare customers as a critical element enabling the
development of fully autonomous vehicles.

“LiDAR continues to prove itself as the critical sensor for safe
autonomous vehicle operation,” said David Hall, founder and CEO,
Velodyne LiDAR. “This investment will accelerate the cost reduction
and scaling of Velodyne’s industry-leading LiDAR sensors, making them
widely accessible and enabling mass deployment of fully autonomous
vehicles. We are determined to help improve the goal of safety for
automotive vehicles as soon as possible, as well as empower the
efficiency autonomous systems offer.”

“We want the cost to be low enough to be used for all cars. We
envision a safer world for the millions of automotive drivers across the
globe,” said Marta Hall, Velodyne President of Business Development.

“From the very beginning of our autonomous vehicle program, we saw
LiDAR as key enabler due to its sensing capabilities and how it
complements radar and cameras,” said Raj Nair, Ford Executive Vice
President, Product Development and Chief Technical Officer. “Ford has
a long-standing relationship with Velodyne and our investment is a clear
sign of our commitment to making autonomous vehicles available for
consumers around the world.”

Baidu also shares Velodyne’s vision to promote safety for autonomous
vehicles on a global scale, and in particular in Baidu’s home market in
China, where Baidu is already testing its fleet of autonomous vehicles. “Baidu
is developing autonomous vehicles with the intention to increase
passenger safety and reduce traffic congestion and pollution in China,” said
Jing Wang, Senior Vice President and General Manager of Autonomous
Driving Unit of Baidu. “Our investment will accelerate our efforts in
autonomous driving with what, in our view, are the best LiDAR sensors
available today and advance Velodyne’s development of increasingly
sophisticated LiDAR sensors.”

Velodyne expects an exponential increase in LiDAR sensor deployments in
autonomous vehicles and ADAS applications over the next several years,
driving high revenue growth. To fulfill the high demand for Velodyne’s
products, the company will continue to expand its resources across
engineering, operations and manufacturing. In connection with this
minority investment round, the Company plans to expand its board of
directors to include two independent industry executives. Velodyne
remains focused on strengthening its leadership in LiDAR technology
development and product commercialization, working with top automotive
OEM and rideshare partners to improve global transportation safety and
efficiency.

Morgan Stanley acted as sole placement agent for this transaction.

About Velodyne:

Founded in 1983 by David S. Hall, Velodyne Acoustics Inc. first
disrupted the premium audio market through Hall’s patented invention of
virtually distortion-less, servo-driven subwoofers. Velodyne set the
audio industry benchmark for premium bass sound. Hall subsequently
leveraged his knowledge of robotics and 3D visualization systems to
invent ground breaking sensor technology for self-driving cars and 3D
mapping, introducing the HDL-64 Solid-State Hybrid LiDAR sensor in 2005.
By 2007, Hall had transitioned the focus of Velodyne to LiDAR sensors
and quickly experienced strong commercial adoption with industry leaders
across multiple end markets.

Velodyne LiDAR has emerged as the leading supplier of solid-state hybrid
LiDAR sensor technology used in a variety of commercial applications
including advanced automotive safety systems, autonomous driving, 3D
mobile mapping, 3D aerial mapping and security. The compact, lightweight
HDL-32E sensor is available for applications including UAVs, while the
VLP-16 LiDAR Puck is a 16-channel LiDAR sensor that is both
substantially smaller and dramatically less expensive than previous
generation sensors. The company will soon release the “Ultra Puck,” with
the specifications similar to the HDL-64, but in a smaller package,
designed specifically for the automotive industry. To read more about
the technology including white papers visit
http://www.velodynelidar.com.

About Ford:

Ford Motor Company is a global automotive and mobility company based in
Dearborn, Michigan. With about 203,000 employees and 67 plants
worldwide, the company’s core business includes designing,
manufacturing, marketing, financing and servicing a full line of Ford
cars, trucks, SUVs and electrified vehicles, as well as Lincoln luxury
vehicles. At the same time, Ford aggressively is pursuing emerging
opportunities through Ford Smart Mobility, the company’s plan to be a
leader in connectivity, mobility, autonomous vehicles, the customer
experience, and data and analytics. The company provides financial
services through Ford Motor Credit Company. For more information
regarding Ford, its products worldwide or Ford Motor Credit Company,
visit
www.corporate.ford.com.

About Baidu:

Baidu, Inc. is the leading Chinese language Internet search provider. As
a technology-based media company, Baidu aims to provide the best and
most equitable way for people to find they're looking for. In addition
to serving individual Internet search users, Baidu provides an effective
platform for businesses to reach potential customers. Baidu's ADSs trade
on the NASDAQ Global Select Market under the symbol "BIDU." Currently,
ten ADSs represent one Class A ordinary share.